Misbehaving

Human behavior doesn’t always follow the rules and that changes everything we know about economics.

In Misbehaving, Nobel laureate Richard Thaler chronicles the development of behavioral economics, revealing how real people often deviate from the “rational actor” model of classical economics. Through research, experiments, and anecdotal stories, he demonstrates how cognitive biases, heuristics, and human quirks shape financial decisions, markets, and policies. Thaler blends rigorous analysis with accessible examples, making complex ideas both engaging and understandable.

The book explores a range of topics, from saving and investing to consumer behavior and public policy, showing how understanding human behavior can improve decision-making and design better systems. Thaler illustrates the tension between economic theory and real-world behavior, highlighting how psychology and economics intersect in surprising and impactful ways.

Insightful, witty, and deeply informative, Misbehaving challenges readers to rethink traditional economic assumptions. It is essential reading for anyone interested in human behavior, finance, and the forces that shape our economic lives.

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